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VILLAGE FUNDS IN THE LAO PDR - 2017
Assessing the Financial Performance and Poverty Outreach of Village Funds

This report presents an analysis that aims to assist BoL to make policy decisions about its role in overseeing the semi-formal financial sector, particularly village funds, as developed under the Village Bank Pillar of the Financial Inclusion Strategy. To this end, this study assesses VFs’ performance by analysing financial performance and poverty outreach of VFs. It addresses two main questions: (1) To what extent are VFs financially sustainable? And (2) Does the introduction of VFs as simply one more microfinance institution improve access to finance for the poor households in rural areas? The analysis of financial performance uses financial self-sufficiency ratio.